Inside | Real news, curated by real humans
Inside Snap

Inside Snap (Jul 17th, 2017)

In a search for ad tech companies, Snap Inc. (SNAP) reportedly has had acquisition talks with San Francisco-based AdRoll. "They're looking for some business, or a set of businesses, that can help them demonstrate the efficacy of their ads," a “person familiar with the matter” said of Snap. Talks with AdRoll began before Snap’s initial public offering in March and continued after the company went public, although the two parties never landed on an offer price. Snap is pursuing marketing tech and ad tech startups in part to ease investor concerns amid its plunging stock price. – BUSINESS INSIDER

  • Email gray
  • Permalink gray

Investing in Snap Inc. is as irresponsible as “driving drunk” said New York University professor Scott Galloway. In an interview with CNBC, Galloway said that investing in Snap is a mistake with Facebook (FB) intent on destroying the company. "The first thing Mark Zuckerberg thinks when he wakes up is 'must wipe Snapchat from the face of the planet,'" he said. Galloway said the social media company is the “most overvalued company in the world.” Snap shares fell below their $17 public offering price for the first time last week and now trade near $15.30. – CNBC

  • Email gray
  • Permalink gray

In yet another competitive move, Instagram is offering advertisers free trials and credits as marketers question the effectiveness of the campaigns with Snapchat. Morgan Stanley, a lead underwriter in Snap’s IPO earlier this year and which downgraded the stock recently, said Instagram is “giving advertisers sponsored lenses for free.” Business Insider, in its interviews with six advertising executives, found that Instagram is regularly incentivizing marketing executives so that they will spend more. “This, at a time when daily active users on Snapchat are inevitably slowing down and advertisers are questioning whether they need to include them in their marketing mix,” said Tom Buontempo, president of Attention, a social media marketing company. – BUSINESS INSIDER

  • Email gray
  • Permalink gray

During its IPO process, Snap Inc. structured its company in a way that does not give shareholders a right to vote. Now, index provider MSCI Inc. has proposed leaving Snap and companies with similar corporate structures out of stock indexes. Other index providers like FTSE Russell and The S&P Dow Jones previously raised similar concerns that the lack of voting rights leaves company leaders less accountable. The S&P Dow Jones anticipates a decision on whether to include Snap in its indexes in the next few weeks. Under Snap’s current structure, co-founders Evan Spiegel and Robert Murphy – and not the company's shareholders –  determine executive pay and select board members. – REUTERS

  • Email gray
  • Permalink gray

As the Street grows increasingly concerned about Snap Inc.’s plummeting stock, at least one analyst thinks shares are nearing their bottom. Drexel Hamilton analyst Brian White said he thinks Snap stock could reach $30. “I think it’s a great buying opportunity,” White said, noting that other high-growth companies like Facebook now trade at “nine to 22 times enterprise value to revenue.” White said that while he acknowledges that Facebook has been dominating the market lately, he said the social media scene “doesn’t have to be winner takes all.” – CNBC

  • Email gray
  • Permalink gray

Did you know you can list your jobs and events here?

How likely are you to recommend Inside Snap to a friend or colleague?

          

          

  • Email gray
  • Permalink gray

Subscribe to Inside Snap